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Edited version of private advice
Authorisation Number: 1051618193411
Date of advice: 6 December 2019
Ruling
Subject: Sale of a going concern
Question 1
Will the sale of land to you with leases in place be a sale of a going concern?
Answer 1
Yes.
Question 2
Will the supply of the business together with the land to you be a sale of a going concern?
Answer 2
Yes they will be the sale of a going concern.
This ruling applies for the following periods:
From the period commencing 1 July XX to the period ending 30 June XX
Relevant facts and circumstances
Relevant legislative provisions
A New Tax System (Goods and Services Tax) Act 1999
· Section 9-20
· Section 38-325
Reasons for decision for question 1
The sale of land with tenants in place in the circumstances of this case is the sale of a going concern of leasing.
Reasons for decision for question 2
The facts of this case indicate that the supplies of the land and the operating structure under the specific agreements in this case met all of the conditions set out in subsections 38-325(1) and (2) and in accordance with GSTR 2002/5 GSTR Goods and services tax: when is a 'supply of a going concern' GST-free?